Every Bank Has Different Divisions and Every Division Has Units Or Departments and Every

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The Bangladesh banking sector is made up of four nationalized commercial banks (NCBs), five government-owned specialized banks, 30 domestic private banks, 22 non-bank financial institutions, including the Dhaka Stock Exchange and the Chittagong Stock Exchange, and 12 foreign banks. The percentage of non-performing loans in the banking system is extremely high. As of March 2004, NCB rates were 35%, government-owned specialized banks at 56% and domestic private banks at 17%. Only foreign banks have been able to keep their non-performing loan portfolio in check at about 2%. The banking system is further impaired by a web of weak balance sheets, minimal demand from qualified borrowers, and heavy reliance on liquid asset-based lending. The U.S. Government and donor institutions are assisting with financial sector reforms. Part of the reform effort is to upgrade regulations and accounting standards to international standards as far as possible. Bangladesh Bank regulates all banking institutions, and, as in many countries, the Ministry of Finance rather than being independent controls the central bank.

Every bank has different divisions and every division has units or departments and every department has their own functions to serve the customers according to customer's requirement. The departments are:

1.  General Banking

2.  Export & Import

3.  Loans & Advances

General Banking is the heart of a bank that operates the day-to-day transactions. It contains opening account, issuing chequebook, receiving account payee cheque, issuing and responding IBCA or IBDA, Outward and inward bills collection, issuing payment order, demand draft and telegraphic transfer, providing locker service and issuing FDR. This is very important to satisfy a customer in this sector because the customers usually make judgment about the quality of services depending on how much satisfaction they are getting from the customer services.

In today’s financial world, banking sector plays an uncompromising role to uphold a country’s economy. Recent times in Bangladesh, private banking sector has been contributing a lot in the total economic growth in the country; and this sector has proven itself as a profitable venture with it’s superior products and customer services.

Prime Bank Limited (PBL) is a fast growing private sector bank in Bangladesh. In terms of quality services and value addition to shareholders, Prime Bank Limited is already maintaining its position at the top slot. The bank has already proved satisfactory progress in all areas of banking operation and it further expanded and consolidated its customer base both in of its core business and retail banking. Prime Bank Limited is determined to explore the different ways to accommodate with the needs of its clients.

1.2 Origin of the Report:

This report entitled “Evaluation of customer service quality in Prime Bank Ltd.” originated from the partial fulfillment of the internship program. , I have done my internship in Prime Bank Limited, Mirpur-1 Branch. I have partly worked in few departments of the branch but mainly focused in the customer service of general banking department. It has given me a chance to directly communicate and provide professional service to the bank clients. My report will focus on the different aspects of customer service provided by the Prime Bank Limited with some comparison with other leading commercial private bank and this report has been prepared under the supervision of Professor M. Mujahidul Islam Chairaman, Department of Banking, Faculty of Business Studies,University of Dhaka.

1.3 Purpose of the Report:

The main purpose of this report is to evaluate the customer service quality in Prime Bank Limited and compare it with some other private sector banks.

1.4 Scope:

The internship program gives the student a great opportunity to get the difference and similarities between the practical and the theoretical world. A student can see a real picture of practical life after graduation and everyone should get the experience before entering the practical world. To prepare this report I had a great opportunity to have real life knowledge about how to evaluate the performance of a bank and make a comparison between Prime Bank Limited and other private sector banks. I also tried to increase my knowledge about banking activities and I think, the information collected from different banks will help me to know the customer services of some other private sector banks.

1.5 Statement of the Problem:

A party becomes a client of a bank through opening an account. Account opening is the primary and core function of the general banking operation. It is a very simple activity but very important and critical function. Now-a-days account holders have to declare in advance about the monthly and yearly transaction projection to avoid any illegal operation. Also customer services involve issuing chequebook, collection and clearing of cheque, issuing pay order, demand draft, telegraphic transfer, preparing voucher, endorsement, cash payment & receive, providing locker facility, etc. All these activities are very risky and important as well. Because a little mistake can harm any banks reputation and create lose as well. So, the customer service providers should be always careful about their efficiency to the clients and should be sincere to give the best effort all the time. Because, the success of a bank depends on the evaluation of satisfaction by the customers.

1.6 Objectives:

The main objectives of the study are:

1.  To evaluate the customer services quality which are provided to the customers as well as their satisfaction with the services of Prime Bank Limited and compare it with other private sector Banks.

2.  To find out the problems of customer services of Prime Bank Limited.

3.  To suggest suitable measures to remove the existing problems and improvement of customer services of Prime Bank Limited.

Other objectives are:

1.  To fulfill the course requirement of the internship Program of University of Dhaka, MBA program.

2.  To have an overall idea about banking system and to have an idea about the customer service in bank.

1.7.1 Research Design: This is a descriptive research of which major objective is to describe something. This study is a single cross sectional design where preliminary information is gathered only from the existing clients (account holder) of Prime Bank Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited to whom the quality of services is being provided and how well the customers are accepting the services. The descriptive research will help to provide the insights and understanding of the present situation of private sector banks.

1.7.2 Sample Design:

Target Sample

The target population will be following:

1.  Clients of PBL, the Premier Bank, DBBL, National Bank and Brac Bank (branches at Dhaka City).

2.  Officers at customer services from the selected banks.

1.7.3 Sampling Technique:

Simple random sampling technique was used in this research. This is a probability sampling technique in which each element or unit in the sample has a known and equal probability of selection. The sample is drawn by a random procedure from a sampling frame.

1.7.4 Sample Size:

The sample size refers to the number of elements to be included in the study. The sample size of this research is 100

1.7.5 Survey instrument:

A structured questionnaire is used in this research to collect data from the valued clients. The method of data collection is communication study. The questionnaire survey method is useful method to collect data for the following reasons:

1.  Structured questionnaire survey method can be used systematically.

2.  100 clients will be surveyed for this research. The allocated time for the research is very limited hence personal interview is not possible.

1.7.6 Survey Method:

The survey method used in this study is primary data collection tool. Each respondent is given a questionnaire to fill in. Through the questionnaire, the respondents were asked about the personal views of the client’s satisfaction on the services of Prime Bank Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited. Certain objectives will be examined using secondary data.

1.8 Source of Information:

The information about the provided services were collected from the officers related with customer service department. Also the lack of services and satisfaction of customers, related information were collected from the clients.

Primary Source of Data Collections are:

1.  Face to face interview with the bank officers.

2.  Some questionnaire survey with the customers was made at Prime Bank Limited.

Secondary Source of Data Collections are:

1.  Official records of the clients.

2.  Annual report of Prime Bank Limited.

3.  Websites of Prime Bank Ltd.

4.  Different publications and brochure regarding banking functions.

1.9 Limitations:

Like all survey works this research is subjected to a number of limitations:

1.  There were some restrictions to have access to the information confidential by concern authority.

2.  There are 52 banks. But for time shortage, I have selected only four banks to compare with and this selection has been made on the basis of 1st, 2nd and 3rd generation banks.

3.  The officers at the customer services are very much busy with their activities. They are interested to help me but have no time to do that. This is the main limitation of the study and the customers are also seem to busy.

4.  Sufficient records, publications, facts & figures are not available. These constrains narrowed the scope of real analysis.

1.  Non-cooperative behavior of some officials from few branches.

Chapter:2

2.0 Profile of Prime Bank Limited

2.1 Introduction to Prime Bank Limited:

The Prime Bank Limited (PBL) is a national banking group that is incorporated on February 12, 1995 as a consequence of persistent efforts of a group of entrepreneurs having excellence of experience exposure in the different fields of industry, trade and commerce of the country. It started operation as a commercial bank on April 17, 1995 with a branch at Motijheel. At present, the bank has 70 branches spread all over the country. It renders all types of commercial banking services to the customers of all strata in the society within the stipulations laid down the bank company act 1994 and rules and regulations formed by Bangladesh from time to time. Diversification of products and services and innovation of products suited to the needs of the customers in keeping with relevant rules and laws have made it different from other commercial banks of the country.

As a fully licensed commercial bank, a highly professional and dedicated team is managing Prime Bank Ltd. with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.

Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services

covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.

The bank has consistently turned over good returns on Assets and Capital. During the year 2004, the bank has posted an operating profit of Tk. 747.84 million and its capital funds stood at Tk 1664.31 million. Out of this, Tk. 700 million consists of paid up capital by shareholders and Tk. 964.31 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 12.43% is in the market and much above the stipulated line of 8%. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.48%.

Prime Bank Ltd., since it’s beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, the strategy is to serve the customers through capacity building across multi delivery channels. The past performance gives an indication of strength. The bank is better placed and poised to take their customers through fast changing times and enable them compete more effectively in the market they operate.

2.2 Goals and Objective of the Bank:

Maximization of Profit through customer satisfaction is the main objective of the Bank. In addition, the others relevant objectives are:

1.  To be market leader in high quality banking products and services.

2.  Active excellence in customer service through providing the most modern and

advance technology in the different spheres of banking.

1.  To participate in the industrial development of the country to encourage the new

and educated young entrepreneurs to under take productive venture and

demonstrate their creativity and there by participate in the national development.

1.  To provide credit facilities to the small and medium size entrepreneur located in

urban & sub-Urban area and easily accessible by our branches.

1.  To develop saving attitude and making acquaintance with modern banking

facilities.

1.  To inspire for undertaking small projects for creation employment through

income generating activities.

1.  To play a significant role in the economic development of the country.

2.3 The Vision & Mission:

To be the most efficient bank in terms of customer services, profitability and technology application.

The Mission:

1.  Continuous improvement in business policies and procedures.

2.  Cost reduction through integration of technology at all levels.

3.  Converting all functions at quick services.

2.4 Managing Director’s Opinion on customer services:

Customers of Prime Bank Limited come from all walks of life from all ages and from every type of entrepreneurial activity. The bank counts among its customers, professional, business magnets, fares and public servants. Among them are grandparents and infants, men and women, the big time industrialist and the small time shop owner. At the end of 2004 PBL had 170,800 customers including credit card holders, highest in the private sector commercial bank in the country. Every month some 1,400 new customers begin to